Skip to main content

tv   After the Bell  FOX Business  January 28, 2014 4:00pm-5:01pm EST

4:00 pm
doing very well today. [closing bell ringing] david: bells are ringing. five days of losses. but we broke that record of losses with a very good trading day today. we didn't have a chance to talk about winners including netflix which jumped to an all-time high. real big winners. individual winners. look at various indexes. the best is taking a big beating past couple days, that is the small and mid-sized caps. russell 2000 doing very well. almost a full percentage point. as you worked up, nasdaq not quite so well but all in the green. top it off with the dow up 89 points. seeps that is where it is settling seems -- liz: that is time for the front page headlines. durable goods unexpectedly fell in december. the commerce department saying durable goods orders declined by 4.3%. david: a new report saying that home prices continue to rise in
4:01 pm
november. the s&p case-shiller index rising 13.7% in the year to november. it was the biggest annual gain in almost eight years. liz: consumer confidence increased in january. a lot of data today as americans grew more optimistic about business conditions and the job market. conference board saying index of consumer attitudes rose to 80.7. that was a beat. david: forbes net income surging 90% in the fourth quarter. earnings in its core north american market fell less steeply. the automaker reaffirmed the forecast for the year. liz: comcast higher after earnings report. the media giant said fourth quarter profit jumped by 26% with an increase in number of video subscribe is. david: pfizer, its earnings fell 59%. one big reason, growing competition for pfizer's products from generic products.
4:02 pm
"after the bell" starts right now. liz: the streak is broken. there you go. five down days broken finally. good day here. let's take a look at the markets and the action. jamie cox, harris financial group managing partner. he says 2014 will be all about fiscal policy. and he is going to tell us the main things you really need to keep your eye on. larry shover joining us in the pits of the cme. we'll begin with larry. start with all the data. one negative piece, durable goods. two positive, consumer sentiment and pretty decent case-shiller home price index that drove up the market. >> a lot and despite challenges the spx held. we saw momentum grow as the day went on unlike yesterday when the market tried to go higher and momentum was just not there. today we had a slew of pretty
4:03 pm
good earnings that came out. we have the fact that emerging markets is in a calm right now. people are starting to realize it is not that big of a deal right now. and then lastly we have, i'm sorry, lastly we're looking at the fact that we've had so many down days in a row that we're overemphasizing a down market. momentum has now kicked in and now we're at the highs of the day. david: which leads some people, i know some people hate that expression, jamie cox, some people say this is a dead-cat bounce. durable goods orders, more evidence that the economy is going a little slower than we hoped back in october and november. durable goods orders were way down last month, 4.3% down. economists expected an uplift. it went in the other direction. what are your concerns right now? >> not a concern but i think we need to look at durable goods over a longer period of time not just one print. if you look at one month you will get a bad read. liz: hold on one sec second, jamie. we have to interrupt, at&t is
4:04 pm
out with numbers. dennis kneale has them. >> yes, liz and dave. we have a beat for at&t. revenue coming in at $33.2 billion. wall street was looking for 33.06. that is nice little beat to the upside. 53 cents a share for at&t. wall street was looking for 50 cents. the eps growth versus year ago is well over the 14% and 2% sales growth maybe. saying in the current quarter and for the rest of the year they could see revenue growing two to 3% on company as big as at&t, that is fair to middling. david: that is great news. this company offer as 5.5% dividend. just extraordinary dividend. you see the stock is getting a little bump of a hours. larry shover, i ask you with the news of apple not selling as many iphones has everybody had expected, that leading to a downswing in that stock will that have any legs as far as at&t is concerned because they depend on a lot of iphones? >> yeah, slobslily could. that might be the reason why it
4:05 pm
is trading at such a discount. the fact is, down 4% since last earnings report. you mentioned, a 5% dividend. forward pe is trading 11% under the s&p 500. but that whole acquisition of leap wireless might help them resolve some of those problems. it's a multiyear, a multiyear project as it were in very competitive space. it definitely could have some issues. i think that is why the stock is being held down as much as it has been. liz: hold on. we can bring in jamie cox here. at&t ended up repurchasing 54 million shares for 1.9 billion in the fourth quarter so this isn't necessarily a new announcement of new share repurchases but again, jamie, this often helps stocks, doesn't it? >> it does. the share buybacks help but i think one of the reasons at&t did a little better than expectations is they have a huge pension plan and that pension plan had some "gravity" on it with interest rates being so low
4:06 pm
last couple years. if you dig into the earnings reports you probably see some tailwind from some pension liabilities decreasing. i would be careful about generalizing the earnings at this particular moment. but i would say that at&t is going to continue to face a lot of pressure from t-mobile and sprint who are trying to whittle away customer base by offering promotions to terminate contracts and stuff like that. so i think there is some headwind for at&t but for dividend investors, for income investors, a great stock to own. david: jamie, put you on hold again. we have another set of earnings coming out from yahoo! sandies has the numbers. >> looks like pretty substantial beat, yahoo! earnings 46 cents in the latest quarter. that beat the street's estimates of 38 cents. revenues coming in right in line with estimates at $1.2 billion for the quarter. that is pretty much in with the same quarter last year a lot of people looking for display revenue. came in at 491 million for the
4:07 pm
fourth quarter. that was a 6% decrease from the same quarter last year. we're going to keep digging through these numbers here, guys, but on the surface, looks pretty good. yahoo! shares climbing in after-hours trading. 46 cents a share, the street was looking for 38. liz: they had a nice bump during the trading regular session. i'm just reading some of these headlines here but, the price per click, quarterly price per click, sandra, decreased approximately 3% this is again ex-correia, compared to the fourth quarter -- ex-korea. price per click you have to have actual oomph versus volume. >> these are numbers everybody was looking for. it will be interesting, liz and dave, to watch shares in after-hours trading. this perception was a beat, better than expected news.
4:08 pm
we got the stock up but on the surface there are some concerning numbers here, particularly price per click, 3%, compared to the fourth quarter of 2012, that was an increase but then, liz you referenced revenue extac, that was decrease. there would be some concern from analysts as they dig through these numbers. leaks like mostly investors responding the fact that this was better than expected on the profits and revenues right in line with estimates. david: larry shover, there are two big problems though that yahoo! has. one is the declining ad revenue up until this quarter at any rate and low cash reserves. we're always talking about apple's 170 billion or whatever it is. yahoo! has just 1.3 billion. that is not chump change but compared to some of its competitors it's not a lot. >> it is definitely not a lot but they have marisa mayer. they have a 24% stake in alibaba. the valuation of alibaba seems to grow every week. i'm not sure it is sketchy but
4:09 pm
seems to grow holding up the stock. there are definitely a lot of headwinds for yahoo! but it is a multiyear story. content and mobile are something they will pull a rabbit out of the hat and really turn the company around and obviously the ipo of alibaba is enormous. content and mobile is something that will carry the day with marisa mayer in charge. liz: still looking for any comment on alibaba because of their stake in the chinese internet company. a lot of people in essence say that is what you really need to pay attention to. that is the real cash cow, right, jamie. >> that's right. alibaba that is all it is with yahoo! you have need to look autumnably and ownership yahoo! has now i like to see what the click-through rate is from tumblr. if you get conversion through that interface that would be huge opportunity going forward. that is the unknown on all the numbers. be interesting to see on the conference call how tumblr is
4:10 pm
turning out for them. i hear it is doing well. david: we're not finished with at&t. we're still getting numbers and information about the company. dennis, what is the latest? >> at&t, what you want to see growth in quarter to quarter in number of subscribers. in several categories at&t falling. postpaid net subscribers fell to 566,000 newcomers. quarter ago of 363. that sim problem. wireless subscribers up 809,000 in the quarter. up far bigger in quarter before that. video customers, up fewer than 260. it was up 265 in quarter before that. high speed internet also down. at&t adding fewer new customers this quarter than it did in previous quarter in most of its businesses. >> bouncing back from at&t back to yahoo! i can't remember if sandra mentioned this but i want our viewers to know we talked about how the actual price per click went down 3% fourth quarter 2012 to 2013, you're looking at a really nice number of quarterly
4:11 pm
paid clicks. ex-korea paid 17%. follow assume going up, prices coming down -- volume going up. david: both at&t and yahoo! higher. we're still waiting for earnings from electronic arts. we'll get to electronic arts as soon as possible. here you see yahoo! up. we have a lot more to come, stick with us. jamie cox, larry shover, appreciate it. liz: for at&t and yahoo! speak of which? david: yahoo! ceo marisa mayer is likely to face tough questions after the internet company's earnings report. profit beat estimates but there are some big questions about yahoo!'s ad sales. we'll break down all the numbers about yahoo! in just a moment. liz: with the president's state of the union speech just hours away, we'll speak with commerce secretary penny pritzker about the economy. this is a first on fox business interview. david: also, apple, it is a big story today. huge drop in the stock. activist investor carl icahn, he
4:12 pm
bought another 500 million apple shares following the tech giant's earnings report but he bought 500 million last week at slightly higher cost. so what you do i think? is now the time to buy apple. >> tweet us at fbnatb. your answers coming later this hour. ♪ [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the tradg floor in real time. ♪ the shell brought him great fame. ♪
4:13 pm
but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their tradinglatform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade. open to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and ows more businesses... we're open to it. start a tax-free business at startup-ny.com.
4:14 pm
(voseeker of the sublime.ro. you can separate runway diculousness... from fashionhat flies off th shelves. and you...rent from national. because only national lets you choose any car in the aisle... and go. and only national isanked highest in car rental customer satisfaction by j.d. power. (natalie) ooooh, i like your style. (vo) so do we, business pro. so do we. go national. go like pro. it's not the "fumbling around with rotating categories" card. it's not the etting blindsided by limits" card. 's the no-game-playing, no-earning-limit-having, deep-bomb-throwing, give-me-the-ball-and-i'll-take- it-to-the-house, cash back card. this is the quicksilver cash card from capit one. unlimited 1.5% cash back on every purchase, everywhere, every single day. so let me ask you...
4:15 pm
at's in your wallet? david: electronic arts reporting earnings just moments ago. let's head back to nicole if he pet on floor of the new york stock exchange. looks like the stock is trading down although recovering a little bit. >> knee-jerk reaction for electronic arts and why it is to the downside you see the earnings per share beat the street, 1.26 versus 1.23 but the revenue number is coming in light for electronic arts, 1.57 billion, versus 1.66 billion. so that is the below the guidance. that is why you're seeing it slightly lower in the after-hours. we're watching that. as far as profit, we saw profit moving to the upside in the latest quarter, third quarter for electronic arts. they did well on sales for games for x bock one, playstation 4 and digital methods as well. that is what helped electronic arts along. and the other thing that is worth noting and i'm sure you
4:16 pm
probably noticed they talked about madden 25 and predictions for the super bowl. eight out of the last 10 matchups were correct for the vince lombardi trophy. they put together broncos and seahawks, and broncos are winning it. david: some holiday sales were as good as they thought. liz: yahoo! reversed and falling rather precipitously at the moment. david: we'll keep an eye on all the earnings. joining us by phone, ron josie, jmp securities managing director and senior research analyst. thanks for joining us, ron. i want to go to the after-hours report right now. it is trading down at about 36.40, yahoo! is, if we put yahoo! on the board. it ended the day at 38.20. what is causing the downdraft? >> that is a good question. if you look at earnings they made sort after push on top line of revenues. ebitda was better overall. they're showing headwinds in terms of pricing and display.
4:17 pm
it was a good number it was right in line with expectations on the top line. what might be reversing things we might look into what alibaba was in the quarter that might be the wildcard. liz: that is what everybody is looking for, the alibaba situation. let's go back to what you talked about before, pricing of ads versus volume of ads. >> sure. liz: wall street wanted to see better pricing is that why the stock is swinging to a lower price than what it closed at? >> that is certainly part of it. just to be clear, display revenues were down 6%. that is little below with we were expecting. two metrics we focus here, your point, liz, pricing down 7%, impressions up 3%. everything the management team has been talking about in terms of new products being launched, new users coming on in terms of mobile and desktop, that is driving impressions higher and helping overall. it is turning out to be much more difficult to increase pricing.
4:18 pm
that will be a big question mark going forward. i would expect at love questions around the call after that. david: sandy smith is with us. following yahoo! a while. down 5%, 4.7% in after-hours. is that because of little dribs and drabs about al by baba are leaking out? >> liz and i talked about this up to the 3:00 hour, many were predicting that marisa mayer would be boasting about the traffic for yahoo! rather than focusing on what the weak points are and that is the actual shrinking media sales business which this earnings report reiterates. a question for the analyst would be, is yahoo! in contraction right now? i mean we saw explosive growth in their stock, up over 80% in 2013. it has doubled under marisa mayer as ceo but is yahoo! in a contraction now? are we expected to see slower growth from this company over the year? david: we should mention, sandy, ad revenues declined in each of the past three quarters, has it
4:19 pm
not, ron, compared year to year? >> it really has. i don't know if this quarter was any different in terms of prior quarters in search a little better, display, pricing is still an issue. as i'm looking to the slides just released maybe the nail on the head, alibaba numbers are out. they're showing 51% growth year-over-year. people might be looking better are than that. one thing we have to remember, yahoo! reports in terms how yahoo! reports a quarter in arrears. this is third quarter which is seasonally slow quarter and particularly from profit perspective as they prepare for their most important fourth quarter. i don't know if the stock is actually reversing as we focus more on operations, something that we certainly do but in terms of the actual alibaba result i would say probably one of the reasons why you're seeing the reversal here in the after-market with growth maybe not what people were expecting at 51%. liz: yeah. warren buffett always says, ron, i know sandra knows this, start reading an earnings report from the last page forward, not from the first page. because i'm just on the one of
4:20 pm
the first pages and they are adding the highlights here and saying that yahoo! continued to launch new products, improve existing properties, et cetera but again it is obviously a little bit deeper in here that we have to look for the ali baba issue. there will be a conference call coming up. what do you need to look for? is it going to be all alibaba ron? >> just making sure that we as analysts and investment community can focus on the core operations, right? that is what they can control. i believe there will be some questions on alibaba. but primarily the question is how do you change display around to see pricing growth? how can search be faster grower than 6% which by the way is better than our numbers? by the way we haven't talked about, ebitda which is much better, profitability than they guided to in q2. fundamental perspective of the company i think results were
4:21 pm
good. they were similar to what we had seen for the quarters before in 2013. just i really think the stock gyration in some of the improvement in the stock this year. most i would say is because of alibaba. david: yahoo! has a 24% stake in alibaba. >> that's right. david: we have seen declines in growth in china. that has concerned a lot of people from the industrial side to the high-tech side and that may in fact be impacting the stock now but it is now down 5% after-hours. liz: revenue was a miss, ex-tac. that is a miss. that is an issue too. david: ron josey, jnp securities, sandy smith, thank you both very much. liz: huge hack attacks on retailers like target and neiman marcus have left tens of millions of americans worrying about the security about their information. so what is the government's consumer finance watchdog doing about it? we'll go to washington to find out. david: when it comes to state of
4:22 pm
the union and health. economy, commerce secretary penny pritzker is sure to have some answers. she will join us next in a first on fox business interview to preview the president's big speech and what the administration says they're doing for business. ♪ she loves a lot of the same things you do.
4:23 pm
it's what you love about her. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approvedo treat ed and symptoms obph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache.
4:24 pm
to avoid long-term injury, se immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision, or iyou have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial.
4:25 pm
david: time for a quick speed read of some of the day's other headlines, five stories, one minute. big tech companies reached an agreement with the justice department over consumer privacy. the deal allows companies to disclose more information about government orders to turn over users information. last year solar jobs in the u.s. climbed by 20% in the period ending in november.
4:26 pm
the industry is expected to add 22,000 new jobs this year. honda shipping more cars out of the u.s. than it imported into the u.s. this is the first japanese carmaker to be the net exporter from the u.s. fourth 2013 was a year for smartphone markets with more than one billion shipments worldwide. a new labor union is being formed for u.s. college athletes. the union will reportedly focus on getting sports related medical expenses, improving graduation rates, among athletes and minimizing risk of traumatic brain injury. that is today's "speed read." [buzzer] liz: perfect timing. excellent job. david: thank you. liz: target, neiman marcus and now michaels, they are retail chains that were recently hit by credit card security breaches so what do you need to know in order to now shop safely? david: rich edson joins us from inside the beltway with details about the government's consumer finance watchdog is saying about
4:27 pm
all this. rich? >> primarily check your credit card statement. there is new scam we'll tell you about. first the director of the consumer financial protection bureau, richard cordray, tells commerce in a morning hearing his agency is offering tips to consumers to avoid the scams and monitoring statements and not giving out information to anyone who asks for it. the lawmakers turn to cordray's bureau. it collects information about consumers. he says officials are working to safeguard it. >> everybody who has information is going to need to jealously safeguard it in order to protect consumers. there is real consumer harm that happens, whether somebody steals your identity or not. even switching out your card as you did involves inconvenience and time and effort. you may have to change accounts and account information and may cause you to miss a payment on something or here or there. those can cause real harm to people as well. >> republicans question whether the government is actually putting americans identity at risk by collecting some of that information. also the better business bureau is out with a new consumer
4:28 pm
alert, saying quote, with this new can, scammers are banking on the fact that many consumers don't check credit card statements all that carefully. don't fall for it. review statements of unexplained charges of $9.84, and contest them with your bank and credit card issuer. call the number on back of your card. watch for that specific charge on your statement, $9.84. don't give out any of your information. back to you. liz: europe they have the chip in the card. we don't really have that. >> right. david: we're behind the times. thank you very much, rich. president obama's state of the union address tonight, will he say anything that will cheer on business folks out there? we're talking to u.s. secretary of commerce penny pritzker on a first on fox business interview on what she would like to hear from the president. liz: facebook is a social network. what happens if you have no friends to add? coming up we'll hear from one analyst it could be time to defriend your facebook stock and he is going to explain why. he has got an interesting
4:29 pm
theory. ♪ mine was earned in korea in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protecon. and because usaa'commitment to serve current and former military members andheir families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. there's nothingike being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen.
4:30 pm
[ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. ask me what it's like introducing fedex one rate. to get your best night's sleep every night. [announcer] why not talk to someone who's sleeping on the most highly recommended d in america? ask me about my tempur-pedic. ask me how fast i fall asleep. ask me about staying asleep. [announcer] tempur-pedic owners are more satisfied than owners of any traditional mattress brand. tempur-pedic. the most highly recommended bed in america. now sleep cooler with extra cooling comfort on our bestselling tempur-breeze beds. visit tempurpedic.com to learn more, anfind a retailer near you. [ mthat if you wear a partial,w you're almost twice as likely to lose your supporting teeth? try poligrip for partials. poligrip helps minimize stress which may damage supporting teeth by stabilizing your partial. care for your partial. help protect your natural teeth.
4:31 pm
♪ [ male announcer ] a car that is able to see, to calculate, to think -- and can respond to what it encounters. ♪ even if that means completely stopping itself. it's the stuff of science fiction... minus the fiction. the 2014 e-class. see your authorized dealer for exceptional offers through mercedes-benz financial services. liz: time for a look at today's market drivers. the dow snapped a five day losing streak as all three major indices posted gains. nine out of the 10 s&p major sectors closed in the green led by financials and health care.
4:32 pm
order 6 orders for durable goods fell in december. weighed down by weak demand for transportation equipment and some electronic products. home prices this is a good piece of data for the bulls, soared 13.7% in november from the previous year, the largest annual increase in nearly eight years but on a monthly basis the s&p case-shiller index dipped actually .1 of a percent. david. david: president obama's state of the union address expected to lay out what the president is calling a year of action. this is something he talked about earlier this month. take a listen. >> the pieces are there to restore some of the ground that the middle class has lost in recent decades. start raising wages for american families but it requires us to take action. this has to be a year of action. liz: what will be the top issues for the president's list this evening? joining us now in first on fox business interview is penny pritzker, u.s. secretary of commerce. welcome, madam secretary,
4:33 pm
pleasure to have you you on the show. thank you for coming. >> i'm very happy to be here, thank you. liz: let's get right to it. people are waiting to hear what this year of action really means. from where you stand as commerce secretary what should be the number one thing that's spoken about tonight? >> well i think what we're going to hear from the president is optimism. the state of the union is strong and i wants to build upon our current situation. we've created 2.2 million jobs over the last year. 600,000 jobs in manufacturing. our housing market is improving. we've had record exports. and so i think but what he recognizes is there is much more work to be done. so he has called upon his cabinet to make sure we're taking the steps and taking the action that's needed to continue to improve the economy and that's what you'll hear. david: secretary pritzker, regulations are a bain for most businesses, particularly small ones that can't farm that stuff
4:34 pm
out to accountants and lawyers, ones have to rely on their own common sense to deal with. in just the first three days of 2014, regulations.gov, listed 141 new regulations for businesses, which 119 are rule-making. this is establishing a completely new rule. how are small businesses expected to cope with this? >> well, you know the president in terms of regulations has there are some regulation that is have to be, you know, completed but he is has also encouraged a review of our regulatory environment which has resulted in 10 billiondollars worth of regulations, tube flick tiff or unnecessary regulations going away. david: but we keep getting more of them, secretary. that is the problem. we hear these reviews and that's great but we keep getting more regulation that is businesses have to cope with? >> well you know, i think one of the things we have to focus on is in the momentum we've got
4:35 pm
going in our economy and one of the things that i have learned over myself months in this job, i've gone out and met with over 900 business leaders and here's what they're talking to me about. they have asked me about trade agreements, immigration, reform, making sure that they have a skilled labor force, investment in infrastructure. that's what they're asking us to focus. liz: well then, we do a lot of work out in silicon valley and the silicon valley technology leaders who really create jobs in this country, they're the ones who say get an immigration deal done. they want to see more h1b visas for immigrants who can come here as engineers and stay here. will the president address that issue? because of course technology is not the only industry that would love to see that. there are others as well. >> well, we're working the entire administration is working hard on immigration reform. this is something we know, first of all we have a moral imperative to deal with
4:36 pm
11 million undocumented individuals in this country, but we also have, it's an economic opportunity. what we know about immigration reform, it will create over the next 20 years if passed, $1.4 trillion of additional gdp. this is something in addition to the visas that would be created, something we must address. you know, over 50% of p-hd candidates in science, in math, in engineering are immigrants. liz: right. >> 40% of our fortune 500 companies were created either by first generation or second generation immigrants. so this is an area where we really need to take action and i'm optimistic we'll see action this year out of congress. david: secretary pritzker, two years ago the president said something, both republicans and democrats could agree on. it deals with the commerce department. he called the commerce department before you were there, by the way, called it an
4:37 pm
outdated, bureaucratic maze that produces redundancy and inefficiency, these are the president's word not my words although a lot of people would agree with it. right now there are six departments and agencies focused on business and trade in the federal government and he said six is too much. he suggested that the commerce department would be closed. whatever happened to that plan? >> well, that's not on the agenda right now. what is on the agenda. david: why not? he said the president said two years ago it was. what happened to that plan? >> well, that plan is, you know, congress is, was not interested in that plan and so what the president has asked me to do is be the voice of business in the administration and to bring the voice of business to the administration as a member of his economic team. that is something that i'm taking very seriously. and -- liz: i would say that, people in america know the pritzker name and it's a business name and in
4:38 pm
a way almost modern-day medici. you have architecture prize, massive businesses. do you have a real support in some business? some people perceive that the president has not been as supportive of business as he could be? >> i'll tell you what, that is not my experience. my experience has been i have absolutely had a voice at the table in economic policy and in my conversations with the president and he welcomes it. he has given me real license to be the chief commercial advocate on behalf of american businesses both domestically within the administration and around the world and i have taken that responsibility very seriously. liz: good. david: secretary pritzker, a pleasure to have you here. please come back and see us again, would you? liz: thank you so much. >> thank you so much. i'm pleased to be here. david: by the way, starting 8:00 p.m. eastern time you can tune in on fox business, live coverage of the state of the union address. liz: good he picked somebody comes from that business
4:39 pm
background, certainly. david: the question, again, the truth is in the actions and there are just more regulations despite all of the rhetoric to the contrary. liz: we have all-star panel tonight by the way with neil cavuto with former government mitt romney, former media tycoon conrad black, former obama advisor robert wolf and former apple ceo john scully. david: ahead of wall street earnings report tomorrow but could be a sign for you to say good-bye to the stock? liz: next we talk with a facebook bear. even though the stock is up pretty dramatically.
4:40 pm
my dad has aor afib.brillation, he has the most common kind... ...it's not caused by a heart valve problem. dad, it says your afib puts you at 5 times greater risk of a stroke. that's why i take my warfarin every day. but it looks like maybe we should ask your doctor about pradaxa.
4:41 pm
in a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...was proven superior to warfarin at reducing the risk of stroke. and unlike warfarin, with no regular blood tests or dtary restrictions. hey thanks for calling my doctor. sure. pradaxa is not for people with artificial heart valves. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke. ask your doctor if you need to stop pradaxa before surgery or a medical or dental procedure. pradaxa can cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding or have had a heart valve replaced. seek immediate medical care for unexpected signs of bleeding, like unusual bruising. pradaxa may increase your bleeding risk if you're 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners... ...or if you have kidney problems, especially if you take certain medicines. tell your doctors about all medicines you take. pradaxa side effects include indigestion, stomach pain, upset, or burning. if you or soone you love has afib not caused by a heart valve problem... ...ask your doctor about reducing the risk of stroke with pradaxa.
4:42 pm
hi, are we still on for tomorrow? tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow. if you have a buness idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reali. start your business today with legalzoom. liz: so after yahoo!'s earnings report this afternoon, investors are looking to facebook's earnings out after the bell tomorrow. the stock has had one heck of a
4:43 pm
run. just look at this chart. up nearly 70% over the past year. david: so is now the time to buy or sell? joining us jeff reeves, investment place.com editor. we sort of teased you you were saying you are kind after bearish. if you're looking for a perfect time to sell, today it was up 3%, now seeps to be the time, right, jeff? >> yeah. i mean, i don't think the facebook will fall off face of the planet and i know about the princeton study said basically it will disappear by 2011. i'm not that bearish on facebook. people are optimistic and i'm looking at earnings. i'm looking at declines in western markets and how it will weigh overall on profitability. between a big run-up and earnings pressure on the user base it might be a time to tread lightly and maybe take some profits off the table. liz: let's get to that user base. any company would love to say 83% of everybody who is on the internet is invested, when i say invested i mean, has actually
4:44 pm
signed up to use this service. you say that is actually not a positive. why? >> well i mean, just look at apple. apple is a great example. it sold 21 million iphones, that is 550,000 a day last quarter that wasn't enough for wall street. you and i both know -- liz: just to be clear, it was 51 million, wasn't it? >> well, at any rate -- liz: okay. >> if you do the math i think it was 550,000 a day. i tried to do the math on back of an envelope today the point is they didn't sell enough. it was a lot of iphones. they didn't sell enough. we live in a world of growth, 83% saturation is today. where are we in a year, liz? you invest inause you expect growth. question of whether or not the revenue per user will go up there is lot of pressure to. that is number people need to pay attention to the most, revenue per user. the saturation is that you will not add more people. the only way you get more money
4:45 pm
is that those people give you more. david: apple today was down almost 8%. close to 8% as you could, down 7.99. we had an analyst who came on yesterday with earnings, said we'll see a swing depending how numbers look of 7% one way or the other. that guy was right on the money. are you saying the same thing about facebook? will we see a dramatic swing tomorrow, depending what earnings are? >> i do think we will. again, i believe that earnings that we're seeing right now from tech stocks it rides on one number. you guys talked about yahoo! if you look at yahoo!'s number, they had a big beat on the bottom line. nobody cared because it was about revenue and cost for advertising. same thing is true for facebook. look at revenue per user specifically. north american revenue per user. that is the most lucrative base. only 17% of their users but almost half of the total revenue. that small group of people, making more money from them, significantly more, facebook will be fine. if you see just a crack there. like cockroaches in your first
4:46 pm
apartment after college. if you see one or two, if you sigh one or two you will worry there are 100 more behind the wall. liz: i saw one and moved. screaming and yelling. i know. such a baby. let's say this though. is there anything from where you stand that facebook could or should be doing to make sure they don't float that sort of a stall speed? >> well you know i do believe sentiment plays a big role here. so if you do see the revenue per user stay reasonably strong and you see the user growth continues even modestly, last quarter we saw quarter over quarter growth in america of half a percent. that is not a lot. but they're already sat trait rate the. -- saturated. we avoid headlines about facebook fatigue and they're the next myspace and they're not cool anymore. even if revenue user is strong i think sentiment holds but the question is for how long? like you said 83% of the internet users are already online the question of valuation and where growth is from here i
4:47 pm
think we're pretty close to a ceiling. frankly i think it is going to happen now, if not now, definitely the next three months. liz: jeff, thank you very much. david: good stuff, jeff. appreciate it. have you heard of so-called leaky apps including angry bids? you probably aren't familiar with the phrase but the government is. we'll go to d.c. with surprising new details on the nsa surveillance programs. liz: the wolf of wall street recently made headlines for having a record number of f-bombs in a film. a new and even longer version of this charming movie is coming out. we'll tell you all about it coming up. ♪ we asked people a question, how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going have to rethink this thing. it's hard to imagin how much we'll need for a retirement that could last 3years or mor so maybe we need to approach things dferently,
4:48 pm
if we want to be ready for a longer retirement. ♪ open to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and ows more businesses... we're open to it. start a tax-free business at startup-ny.com.
4:49 pm
4:50 pm
4:51 pm
david: just keeps coming. new leaked documents show the nsa is learning how to use smartphone games like "angry birds" to get users private information. liz: bring birds, right. fox news catherine herridge joins us from washington, d.c. with the new angle on the story. nsa is working alongside the british counterpart to harvest data from phone apps including the popular game, "angry birds." according to the intelligence
4:52 pm
agency targets leaky apps that televise data without encryption. they include marital status and age and routine web traffic can be used to identify your interests and universe of contacts. both spy agencies according to documents showed interest in google maps which can pinpoint our location within a few yards. they described this having a high degree of precision. for those that routinely use apps the new reporting is unsettling. >> our constitutional rights are vastly more important than spying on phone calls or data mining google maps. i think there is a line that is definitely overstepped going that route. >> yet another reason to stay away from smartphone apps. it is not unrealistic to think people, whether it is large companies, retailers, or the government can track you and they have certainly been tracking our spending habits for a very long time. this doesn't seem like a huge
4:53 pm
leap for me. >> at a white house briefing before the state of the union spokesman jay carney's position was consistent with a statement released by the in. is a. that the nsa programs go after valid intelligence targets. tomorrow the nsa programs and fallout of the snowden leaks will be under the microscope on capitol hill. we have the annual senate intelligence hearings on worldwide threats. david: catherine herridge, great to see you. >> good to see you too. thank you. liz: we wouldn't worry too much about "angry birds" being stalked by the nsa. they're so stuff that the national hockey league picked one as new mascot. i ran into hockey bird, the nhl mascot at the outdoor hockey battle. this was outside yankee stadium and new york rangers and new jersey devils. the nhl and rovio, the company behind "angry birds", created their very own version of the
4:54 pm
feathered cannonball. they say it represents the energy, joy intensity of game. david: this is outside game? liz: outside game. david: nothing better than an outside hockey game. liz: rangers thought the bird was pretty tough. they beat the devils 6-3. david: go rangers. great to see an outdoor game. we need more of those. liz: at a baseball stadium. david: i've seen boxing there. they do a lot of events there. apple shares sank 8% following the tech giant's earnings report so we asked on twitter, maybe now is the time to buy. what do you think? your comments coming up next. note ♪ i ys say be thman with the plan
4:55 pm
but with less ergy, moodiness, i had to do something. i saw mdoctor. a blood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especlly those who are or who may become pregnant, and children should avoidt where axirons applied as unexpected signs of puberty in children or changes in body hair or incased acne in women may occur. report these symptoms to your doctor. tell your doctorbout all medical conditions and medications. seris side effects could include increased sk of ostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, larged or painful breasts, problems breathing while sleeping and blood clots in the legs. common se effects include skin redness or irritation where applied, increased red blood cell count,
4:56 pm
common se effects include skin redness headache, diarrhea, vomiting, and increase in psa. ask your doctor about axiron.
4:57 pm
4:58 pm
david: time to go "off the desk." "the wolf of wall street," already incredibly long. it is three hours but, what if i told you that the dvd version is going to be even longer? a lot longer. fans of movie will be able to see a four-hour cut of the film. they call it director's cut. lengthy edit that one martin scorsese really wanted before it was cut down for theatrical release. it will be available for purchase this spring. i bet liz will not buy it liz i saw it and once is enough. i think one listen said i think apple is close to a buy. i think it pulls down to 47 a 5
4:59 pm
then you can pull the trigger. >> wayne wrote in on facebook, investors don't understand how revolutionary apple's icloud is. apple is far more than just a phone company. liz: time for top two things to watch. number two is facebook earnings. they come out after the bell here on "after the bell." social network giant is expected to report earnings of 27 cents per share. revenue should closely be watching facebook's ad revenue after the company added auto play video ads in its news feed and improved the algorithm to deliver ads. david: i didn't know that the number one thing to watch tomorrow, of course it is already started, started today, but tomorrow we get the results. 2:00 p.m., the federal open market committee report is read to us all. investors will look for any clues whether the fed will continue to reducing the pace of its bond buying program, the tapering after make aing a
5:00 pm
landmark decision to cut in december the bond buying purchases by $10 billion. maybe they will get spooked by the market downturn and hold off for a while. we'll see. liz: peter barnes will be there as you saw in the shot. melissa is next. melissa: state of the union a few hours from now. top of mind for the president, raising the minimum wage. we're starting with a college graduate making that wage at starbucks. hear what a real person has to say about putting this issue first. even when they say it's not, it is always about money. melissa: what is it like to be a college graduate with a degree paying back more than $40,000 in student loans and working a minimum wage job? president obama plans to raise the wage for federal contractors almost three bucks to 10.10 an hour and h